From $2M to $2B in 18 Months: What Entrepreneurs Can Learn From Oculus VR

Oculus-Rift-Best-of-CES-600x377Peter Diamandis | LinkedIn – As I’m sure you’ve already read, Facebook recently acquired Oculus Virtual Reality for $2 billion.
This is a huge deal… and here’s why:
Brief Company Timeline:
August 2012 – Oculus Rift raises $2.5M on Kickstarter
June 2013 – Oculus Rift raises $16M in venture capital
December 2013 – Oculus Rift raises another $75M, led by Marc Andreessen
March 2014 – Facebook buys Oculus VR for $2B.

The CEO of Oculus went from:

*”I’ve got an idea” — to —
“I run a $2 Billion company”
…in under 18 months. Ouch!*

A few more impressive numbers:

•The CEO (Palmer Luckey) is a 20-year-old college dropout
•The company had only 50 employees at the time of its2B exit
This is one of the more striking examples of exponential growth as of late, and hits on many of the lessons we’re learning about at the Abundance 360 Summit.

Let’s break down why this is so incredible.

Crowdfunding – As we’ve discussed, crowdfunding can help you secure your seed investment (which for Oculus was $2.5M) by validating your market and fit. Then, with the momentum you build, you can raise venture capital. In this case, that meant $95M… This deal substantiates the claim that the value of crowdfunding is so much more than just the money raised during the campaign. Oculus VR received incredible market validation and curated a massive network of passionate developers to push the technology (and business) forward.

The User Interface Moment – As we discussed at Abundance 360 this year, the key to monitoring exponential technologies is looking for User Interface moments, which herald something big. Very big… (If you are unfamiliar with the term “User interface moment,” think back to the Mosaic Web Browser created by Marc Andreessen. It was the moment when “the web” became useful to the world).

Breakthroughs Coming from a Novice – There have been MANY attempts to bring virtual reality headsets to mainstream audiences, and hundreds of millions have been spent in the process. This breakthrough didn’t come from an expert (who normally can tell you what can’t be done) but from a passionate novice who didn’t know what couldn’t be done. So, it would only make sense that Marc Andreessen was the lead investor in Oculus VR – a veteran in spotting the true “user interface moment” and capitalizing on timing.

Exponential Organizations – The story of Oculus VR is another incredible validation of the power of Exponential Organizations. Like the examples of Exponential Organizations before it, Instagram, AirBnB and WhatsApp, this story has all the pieces of the exponential organization puzzle: A Massively Transformative Purpose (MTP), a small team, use of exponential technologies, use of the Crowd & Community, etc.
read more:


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